Bounce in Play, Technical Points

From a technical viewpoint the market on Friday moved out of the trading range and touched the initial resistance level at 1393 on the S&P.  This sets up two things, an initial new range of 1360 to 1395 and the prospect that the 1435 level will be reached in the next few weeks.  The 1435 area is important for a number of reasons, first it was the critical area where the first bear market signals were set in February 2007 and while the market went higher into October 2007 this was the big point.  Now the 200 day average is around 1435 and needs to be tested.

Keep in mind that the most important element for the remainder of the year is the anticiapated move from 1435 down to 1120 as the bear market resumes.

8:42 AM CDT